When is a home improvement contract unenforceable against the buyer per the Truth in Lending Act?

The correct response is based on the provisions of the Truth in Lending Act (TILA), which allows buyers certain rights concerning home improvement contracts and loans. One of these rights is the ability to rescind a loan agreement within three business days following the signing of that agreement. This consumer protection measure is designed to give homeowners time to reconsider their financing options without penalty. If a buyer exercises this right to rescind, the home improvement contract becomes unenforceable against them, effectively nullifying any obligations that were established under that contract.

In contrast, the funding being provided by a government loan or grant does not automatically render a home improvement contract unenforceable. Likewise, if a salesperson sells the contract or if the owner decides to hire a different contractor to complete the work, these actions do not directly relate to the enforceability of the initial contract under the provisions laid out by TILA.